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ARTICLE · 25 APRIL 2007

House Of Lords Rules On Construction Act

MacRoberts
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The judgment in the first case to go to the House of Lords in relation to the Housing Grants Construction & Regeneration Act 1996 was issued today – Melville Dundas (In Receivership) v George Wimpey & Norwich Union. The House of Lords has overturned the decision of the Inner House of the Court of Session and reinstated that of Lord Clarke in the Commercial Court.

United KingdomReal Estate and Construction
Shona Frame
Shona Frame
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The judgment in the first case to go to the House of Lords in relation to the Housing Grants Construction & Regeneration Act 1996 was issued today – Melville Dundas (In Receivership) v George Wimpey & Norwich Union. The House of Lords has overturned the decision of the Inner House of the Court of Session and reinstated that of Lord Clarke in the Commercial Court.

The case concerned the liability to make an interim payment under a building contract. The court had to consider the interaction of the payment and determination provisions of the building contract with the 1996 Act.

The contract was a standard form JCT With Contractors Design, 1998 edition.

The contractor, Melville Dundas, applied for an interim payment on 2 May 2003. The final date for payment was 16 May 2003. No notice of withholding was served and no payment was made by Wimpey. On 22 May 2003, Melville Dundas went into Receivership. This triggered Wimpey’s entitlement to determine the contract which they did on 30 May

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